TOLEDO, Ohio (AP) — Ohio is moving toward shutting down
hundreds of storefront gambling operations that have sprouted up in
strip malls and vacant stores, offering computer games that operate like
slot machines with cash prizes.
The Ohio House approved a proposal Wednesday that amounts to a virtual ban on the game parlors known as
Internet cafes.
It’s
been nearly two years since lawmakers first began weighing what to do
about these sweepstakes games that are largely unregulated and don’t
face the same scrutiny as casinos and other games of chance. Some
favored new regulations while others wanted a ban on the Internet cafes.
"Internet cafes are simply gambling by another name," said Rep. Dennis Murray, a Democrat from
Sandusky.
The
bill, approved by a 2-to-1 margin in House, would shut down nearly all
of the estimated 800 sites by narrowly defining what counts as a
sweepstake.
Owners of the Internet cafes say the proposed legislation could mean the loss of as many as 5,000 jobs in
Ohio.
Most
of the operations are in the northern half of the state. Customers pay
for Internet time or phone cards and use them to bet points on computers
loaded with games such as poker. The businesses say they sell
legitimate products with a chance to win a prize.
Rep. Kenny Yuko,
a Democrat from the Cleveland area, said it was the wrong time to crack
down on businesses that employ many people and generate tax money.
"Our cities get some valuable dollars that they’re in desperate need of," he said.
Several cities have sought to close the sweepstakes cafes, only to lose in the courts.
Ohio
Attorney General Mike DeWine has led the push to get rid of the
businesses, saying there was no guarantee the games were fair and that
there was no way to track where the money goes.
Some critics
contend the winners are pre-determined. Others complain that they take
money away from casinos and charities that offer gambling and are
strictly regulated.
It’s unclear whether the state Senate will approve the bill before the legislative session ends this
year.
Senate
President Tom Niehaus told reporters Wednesday that he planned to
review the bill. "We’re going to take a look at it," he said. "I don’t
know what’s in it, but we are going to take a look at it."
Niehaus said a week ago that he was more inclined to favor regulation rather than an outright ban.
Charities
and fraternal organizations such as the Veterans of Foreign Wars that
offer gambling and must give a share of their profits to charity have
argued that the Internet cafes should at least play by the same rules.
William
Seagraves, executive director of VFW of Ohio Charities, said Internet
cafes been a big reason why the groups’ charitable contributions from
gambling have dropped from $6 million a year to $3.8 million since 2005.
"They kill us," he said. "They’re just running wild. I’m hoping they get rid of them
because it really hurts us."
Copyright 2012 The Associated Press.